Old house...constant dilemmas

Our old house was first constructed in 1905 on a dirt foundation....they used some old linoleum to cover the dirt first. Then they dragged in an old school house...half of one...and attached that. Then they built on an addition above a portion on a cement slab...and then finally enclosed an old cement slab patio for another addition. Last winter a pipe broke under the house and flooded...which is how we found out there was no foundation. If a former friend who inspected it wasn't already dead....well....so now the wall in the bathroom which is an outside wall with no foundation is rotten at the bottom and about six inches or so up the studs. To make it even more difficult...the house was covered in heavy cement stucco who knows how many years ago, so the walls are really difficult to work with. Of course, the insurance company said it wasn't their fault that the house hadn't been correctly built. Funny...they insured it for twenty years before anything happened. So now we need to know if anybody has any practical ideas about curing the problem of the bathroom wall....and please...other than just tearing the whole place down...which is what about three professionals suggested. It is not an option for us. Thanks.....